Steel producer ArcelorMittal South Africa (AMSA) reported a smaller headline loss of R3.4-billion in 2025 relative to the loss of R5.1-billion posted in 2024 after having closed its long-steel business during the year ended December 31, 2025.

The group’s earnings before interest, taxes, depreciation and amortisation (Ebitda) loss was narrowed by 63% from R2.947-billion in 2024 to R1.1-billion in 2025, which AMSA said had been an exceptionally difficult year for the steel industry. This, owing to weak domestic economic activity, persistent global overcapacity, high import penetration, elevated administered input costs, and continued pressure on steel prices.

CEO Kobus Verster described the wind-down of the longs business as difficult and painful, but said it had been necessary to address a chronically loss-making operation and remove a major structural drag on earnings.

“The impact of the longs business on Ebitda was neutralised in 2025, compared to a loss of R1.7-billion in 2024,” Verster said.

Nevertheless, AMSA was still progressing discussions with the State-owned Industrial Development Corporation (IDC) that it said could shape the company’s outlook, if successfully concluded.

Bloomberg reported in January that the IDC was preparing to submit a nonbinding offer for the business to which it had already extended loans in an effort to create space for a solution to be found to salvage the longs unit, including the Newcastle mill, in KwaZulu-Natal.

Having provided R2.6-billion in support to AMSA, including a R1.68-billion interest-free loan, the IDC conducted a due diligence into the longs business, but no offer had been made by the time production at Newcastle ceased in November.

Describing the trading environment as challenging, Verster said AMSA was focusing on balance-sheet resilience and that, besides the longs closure during the year, structural footprint adjustments of about R740-million had been undertaken.

He argued that AMSA was positioned to navigate the immediate and near-term challenging market conditions while remaining focused on its medium- to longer-term objectives.

“Operational reliability improvements in the flats business, available capacity to replace imports, disciplined cost management, and progress in discussions with the Industrial Development Corporation are expected to shape the company’s outlook for 2026 and beyond.”